Yocum Company purchased equipment on January 1 at a list price of $120,000 and received a $2,400 cash discount. Yocum paid $6,00
1 answer:
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$273 ,000 being the equal installments for all the three years
Explanation:
I year interest = $ 630,000 ×15÷100 = 94,500
II year interest = $420,000×15÷100 = 63,000
III year interest = $210 ,000×15÷100 = 31,500
Total interest = 94,500+63,000+31,500 = 189.000
Installments payment with interest for each year is=
(630,000 + 189,000 = 819,000÷ 3 = 273,000)
= $273 ,000 being the equal installments for all the three years